How to Improve Fulfillment With Order Management Software

The idea that customer satisfaction is necessary for a business to thrive is a no-brainer. And it’s not news that fast and accurate order fulfillment is a key ingredient in keeping customers happy. The need for good order fulfillment is a given, but in our experience, even successful companies can improve—even if they have the basics down. 

Every business should strive to up its game when it comes to order processing. Customer expectations keep rising, and competitors like Amazon are meeting their expectations. To compete in the marketplace, companies must constantly improve efficiency, and the warehouse should be their No. 1 target.

Order management software (OMS) and warehouse management software (WMS) are tools that help warehouses refine and enhance order fulfillment processes. They can make a difference by identifying and fixing problems in fulfillment, as well as by optimizing things that the warehouse is already doing well.

The Order Fulfillment Process

In the life cycle of inventory management, the steps involved in fulfilling customer orders are arguably the most important. This part of the process determines what arrives on the customer’s doorstep, the condition it is in, and how quickly it gets there—all things that contribute to customer satisfaction.

Order management is the process of handling purchase orders and inventory from the moment a customer clicks the “buy now” button until their package is shipped. The general steps involved are:

Within each of these steps are several subtasks, each presenting an opportunity to either optimize or impede the workflow. An order management system automates and directs the process, helping to determine the most efficient way to do things and pinpoint areas for improvement. 

While filling customer orders depends on these steps, the process does not happen in a vacuum. Efficiency is important overall—in steps that come before and after the fulfillment segment of the workflow. A WMS that either includes OMS or integrates with a stand-alone order management system can optimize all procedures—utilizing real time data from inventory’s arrival at the warehouse until it leaves on a delivery truck—including those associated with fulfillment.

Signs That Your Order Fulfillment Needs Help

How does a warehouse know it needs to improve? Problems with order fulfillment tend to show up in one of four common ways: 

Poor inventory management. Frequent stockouts and backorders, or unsellable dead stock, can result when there is a lack of real-time inventory data or the inability to anticipate demand. And more importantly, it’s hard to fill orders when you don’t know what’s on the shelves or haven’t established a reorder point.

Increased returns. Picking and shipping the wrong products will inevitably result in customers returning items and requesting refunds.

Delays. Slow picking and packing and missing promised delivery dates are all symptoms of subpar fulfillment practices.

Losing customers. Customer satisfaction and retention are directly related to successful order fulfillment, particularly when accurate tracking information is provided. When online orders arrive late, damaged or wrong, follow-up purchases are unlikely.

There are other signs that improvements are called for that might not be quite as obvious. For example, a warehouse might notice it’s spending more than usual on overtime, packaging supplies, or shipping due to inefficiencies in their supply chain. Or they might be barely keeping up with the pace of current orders, let alone able to take on more.

Whether warehouse managers are facing any of these pain points or are simply trying to increase profits for growing businesses, improving fulfillment will help.

Improving Each Step in Fulfillment With OMS and WMS

Every company has room for improvement in its fulfillment processes, including how they utilize fulfillment centers, but it is not always obvious which areas need the most attention. Let’s walk through the entire order fulfillment process and examine how each can be optimized, specifically with the help of order management software and warehouse management software.

Order placement

The fulfillment process begins with the customer placing their order. 

• Order management software can make buying easy from companies using multiple sales channels.
• Integration with the billing and accounting system is possible with OMS.
• OMS software captures and saves customer information to assist with future interactions.
• Additional or associated items can be suggested for purchase based on past buying data. 
• Transparency allows the customer to check on their order status at any time. 

Order acknowledgment

Companies need a method to immediately assess inventory levels and manage sales orders, as well as to communicate anticipated delivery dates to the customer.

• Real-time inventory data is essential to know if the order can be filled immediately or if the items are back-ordered. Ideally, this information is available to the customer before they commit to the order and payment is processed.
• Inventory data must be consolidated if the company has several warehouses for a clear picture of what is in stock and where.
• The addition of WMS can avoid stockouts by triggering replenishment alerts when inventory levels fall to a specified level.
• WMS can also help managers determine their staffing needs to meet the demand of incoming orders.

Picking

The physical act of pulling items from the shelves for order fulfillment is often a prime opportunity for improvement.

• Automating the process with the use of barcode scanners makes the process faster and eliminates human error. 
• Organizing the warehouse for efficient picking is helpful. WMS can design the layout specifically for this purpose, including optimizing storage and slotting protocols.
• In addition to real-time inventory quantities, WMS can track the exact location of every SKU, eliminating guesswork and misplaced items.
• WMS will choose the most productive picking method as well as map out pick paths for maximum speed and accuracy.

Packing

There is more to packing than simply tossing items into a box. Like picking, a lot can be done to improve the procedure.

• Inventory control for packing materials is as important as for the products themselves. Knowing what is on hand and when to order more improves efficiency.
• WMS can automate cartonization, measuring DIM weight and using the information to choose the appropriate packing vessel.
• Enhancing order fulfillment with kitting, customization and special packaging can be a lucrative revenue stream. WMS can write rules for these value-added services into existing workflows.

Shipping

Carriers must get things to customers quickly, in good condition and at a reasonable cost.

• OMS can integrate label printing and initiate the shipping process.
• WMS has the ability to shop multiple carriers to find the most efficient and cost-effective delivery choice by order.

Efficiency Beyond Order Fulfillment

As detailed above, adding warehouse management software with its key features gives companies flexibility beyond what they get with basic order management software, especially when ensuring seamless integration with third-party logistics. OMS is great at dealing with individual orders. WMS is more comprehensive, improving all aspects of the operation, and in turn, has a direct impact on order management and fulfillment.

The most important tool that WMS brings to the table is its data analytics and reporting capabilities. OMS can capture some data points for basic KPIs specifically tied to order fulfillment like order accuracy or picking speed. But WMS can go much deeper into the data.

With WMS, managers can set and track custom benchmarks. Every time a product is touched or moved can be recorded with a scanner. This data allows them to assess what is and isn’t working in the warehouse. 

Automating data collection provides a wealth of helpful information. A nearly unlimited number of data points provide predictive analytics to help managers forecast trends and seasonal ups and downs. This, in turn, can dictate inventory purchases, staffing levels and more.

Prioritizing Improvements in Order Fulfillment

Good order fulfillment is the foundation for keeping customers coming back. Any company that is big enough to start feeling the strain of keeping up with orders needs to start thinking about how it can improve the process. 

Implementing order management software to streamline the order lifecycle is a great step in the right direction. The addition of warehouse management software—either to replace or integrate with an existing OMS—takes it even further. WMS can improve not only order management but all of the other moving parts that contribute to a company’s success.

See what’s possible with InfoPlus warehouse management solutions. Contact us today to request a demo.